Kaiser Aluminum Corporation (KALU)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,314,900 | 2,267,400 | 2,288,800 | 2,422,400 | 1,864,700 |
| Total stockholders’ equity | US$ in thousands | 668,000 | 652,200 | 631,200 | 692,500 | 732,400 |
| Financial leverage ratio | 3.47 | 3.48 | 3.63 | 3.50 | 2.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,314,900K ÷ $668,000K
= 3.47
The financial leverage ratio of Kaiser Aluminum Corporation has shown a steady increase from 2.55 in December 2020 to 3.47 in December 2024. This indicates that the company is relying more on debt financing compared to equity over the years. A higher financial leverage ratio suggests a higher level of financial risk, as the company has more debt relative to its equity. It is important for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage its financial risks effectively.
Peer comparison
Dec 31, 2024
Company name
Symbol
Financial leverage ratio
Kaiser Aluminum Corporation
KALU
3.47
Howmet Aerospace Inc
HWM
2.31
Mueller Industries Inc
MLI
1.19
Quanex Building Products
NX
2.30